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Path to Finance Transformation
1.State of Play & New
Pressures Faced
2.Reshaping the role of
finance
Agenda
3.Success Stories
4.Where to Start ?
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Path to Finance Transformation
Global businesses are striving to
engage the empowered
2
and connect seamlesslywith their ecosystem
customer
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Combined with forces that are changing how welive, work & play
Pervasiveconnectivity
Big data
Social
Analytics
Mobile Cloud
Transformation forces
We are here
Sensorsand devices
Socialmedia
VoIP
Enterprisedata
2013 2015
Percentageof uncertaindata
Making data the new oil
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Path to Finance Transformation
Analytics Market Trends
Application-Centered Today Analytics-Centered Tomorrow
Transformation
Moving to a New Paradigm
A
pplication-Centered Today Analytics-Centered Tomorrow
Transformation
Moving to a New Paradigm
The impact of the transformational shift: (1) Analytics becomes central & pervasive(2) Data fuels business outcomes
All Data
Data
about
Things
Data
about
People
Data
about
Money
+
IBM will invest further in creating more skils in the market
IBM will aim to invest in partners who are building an analytics applications
Data owners seek to monetize data becoming both potential clients and potential competitors
Data aggregators and brokers are emerging; access to data will increasingly require licensing
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Path to Finance Transformation
Technology is the single most importantexternal force shaping the organizations future
CEO Studies 20042013
2004 2006 2008 2010 2012 2013
Technology factors
Market factorsMacro-economic factors
People skills
Regulatory concerns
Socio-economic factors
Globalization
Environmental issues
Geopolitical factors
Source: Question E8What are the most important external forces that will impact the enterprise over the next 3 to 5 years?; n=884 [CEO only]
Ins ights from the
2013 IBM Glob al C-sui te Study
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Path to Finance Transformation
Shift from managing performance to enabling performance
+
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Path to Finance Transformation
Warehouses(Relational & OLAP)
Transaction Systems Flat, Legacyor Modern
ExternalSources
How are we doing? Why?What should
we be doing?
How we are actually making decisions
12
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Path to Finance Transformation
CFOs Want to Do Better in Five Key Areas
Ins ights from the
2013 IBM Glob al C-sui te Study
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Path to Finance Transformation
15
Enabling performance not managing it
Source: 2010 IBM Global CFO study
Automate production of metrics
Drive common planning
and corporate and
management reporting Advance analytics
Drive data and process standardsManage Risk
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Path to Finance Transformation
Performance enablingorganization
Market
Empowered business teams
Business team
CBA
From performance management to performance enabling
Functions
Market
Performance managementorganization
InformationCBA
Information
Decisions A
ccountable L
eadership
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Path to Finance Transformation
+
I
II
III
While timeless responsibilities remain, Finance leaders areredefining imperatives and how they approach them
19
Protect enterprise viabilitythrough careful cash andcapital management
Leverage trustedinformation to understandthe state of the business
Create effective andefficient financialoperations
1
2
3
Drive agility throughenterprise integration
Help the business makebetter decisions byanticipating the future
Lead business modelinnovation through a newdiscipline of performance
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Path to Finance Transformation
Drive agility through enterprise integration:
Weave analyt ics into
the fabric of the
enterprise
Streamline and
autom ate analyt ics
Optim ize analyt ics,
execut ing in
i ts ideal locat ion
Work f rom data that
provides a single
vers ion of the t ruth
Cont inual ly move
talent to highest value
act ivi t ies
BACK OFFICE FRONT OFFICEAGENT OFINTEGRATION
Finance
IT
HR
Procurementsourcing
Customerservice, casemanagement
Sales
Marketingpromotions
Cross-channelcommerce,fulfillment
CFO
I
KEY CHARACTERISTICS
Finance
IT
HR
Procurementsourcing
Customerservice, casemanagement
Sales
Marketingpromotions
Cross-channelcommerce,fulfillment
CFO
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Path to Finance Transformation
Becker Underwood transformed its planning andperformance management
Challenge
Corporate expansion through acquisitions and organic
growth resulted in lack of visibility and consistency.
Solution
Implemented planning to achieve quick, high-impactresults focused on sales and order/refresh process
Incorporated customer and product-level plans intoa 12-month rolling forecast for greater visibility
Results
Resolved supply chain issues resulting in 50 percentdecrease over three years
Incorporated order data into the forecast process andincreased accuracy by up to 15 percent
Better access to information across the organizationhas led to better customer service and shorter lead times
Becker Underwood producesspecialty bio-agronomic andcolorant products. Foundedin 1982 and headquarteredin Ames, Iowa, thecompanys annual revenuesare more than $240 million.
CHALLENGE
SOLUTION
CHALLENGE RESULTS
21
I
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Path to Finance Transformation
Zurich Insurance implements sales performance management tostreamline its agency management & compensation
Challenge
Previous systems no support for multiple channels andindvidual country requirements
Data models not consistent on a global basis Needed a consistent application of agency incentives
Solution
Flexibility for countries & channels
Extensible global data model
Reuse of a consistent framework of tables/reports/calculationsthat can be re-used across each country roll-out
Indonesia: deployed for 2 ChannelsAgency and BancAssurance. 3500 payees initially. Total project from scoping toGo-live 6 months
Singapore: 2 ChannelsAgency and FinancialAnalysts/Brokers.
Zurich Insurance selectedICM(formerly Varicent) in late2011.
CHALLENGE
SOLUTION
RESULTS
23
I
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Path to Finance Transformation
Help the business make better decisions by anticipating the future:
Cons istent ly apply analyt ical
r igor to new and emerging
data sources
Integrate f inancial and
operat ional informat ion
to create insight
Remain ahead of new,
emerging comp l iance
requirements
KEY CHARACTERISTICS
ACTIONABLE INSIGHT
Opportunities Customer needs
Customer behaviors
Risk factors
Competitive threats
Apply predict ive analyt ics to f ind
anomal ies, opt imize decis ions and
business processes, and del iver
foresight to the business.
II
Point of ImpactOperating Plan
Execution
Finance
IT
HR
Procurementsourcing
Customerservice, casemanagement
Sales
Marketingpromotions
Cross-channelcommerce,fulfillment
Foresight
PredictiveDemand
Planning/Forecasting
Product &Marketing
Propensity tobuy
Fraud & RiskAnalytics
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Anticipate the future: Predictive & Financial Analytics
Example outcomes:
The solution for treasury cash flow was combined withdaily P&L from SAP with the historical cash flow forecast
combined with the daily agency cash flow. A predictive
model was then overlayed on to the cubes to provide
what the daily position would be
Australia Posts objective was to forecast
its daily cash flows in order to maximiseinvestment returns
II
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Path to Finance Transformation
28
Lead business model innovation through a new disciplineof performance: Creating the future
III
C-SUITECFO
OUTTHINK AND OUTMANEUVERTHE COMPETITION New business model decisions
Business model innovation
and prototyping Long term financial roadmaps
Value and risk drivers across
the entire value chain
Externalopportunities
Internallevers
MODEL
MODEL
MODEL
MODEL
MODEL
Clearly und erstand
value and r isk
dr ivers
Rigorously and
cont inuou sly realign
resources to new
oppor tuni ty
Use advanced analyt ics to
ident i fy the r ight act ions to
capital ize on m arket and
technology changes
KEY CHARACTERISTICS
Create long term financial
roadmaps encom passing
business model
t ransformat ion
Integrate data and
innovate across
mul t ip le business
uni ts
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Path to Finance Transformation
McCormick protects profit with detailed understanding of customervalue and price volatility
29
Challenge
Significantly reduce the profit at risk due to volatilecommodity input prices
Solution
Collect and analyze sales plan data by customer and across
over 30,000 SKUs Evaluate the resulting profit contribution of product input
in the bill of material
Results
Diagnosed profit improvement moves ahead of time;commodity price increases can be passed on to consumers
or renegotiated with industrial customers Conducted value engineering with operations to reformulate
flavors using commodities from different regions and suppliers
Recorded $56 million in cost savings from theirComprehensive and Continuous Improvement program withTM1 and Cognos
McCormick is a global leaderin flavor. With more than $4.0billion in annual sales, thecompany manufactures,markets and distributes spices,seasoning mixes, condiments
and other flavorful products tothe entire food industryretailoutlets, food manufacturersand food service businesses inmore than 110 countries.
CHALLENGE
SOLUTION
RESULTS
III
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Path to Finance Transformation
Borghetti's co-pilot flying high at Virgin
Virgin Australia's CFO Sankar Narayan has helped chiefexecutive John Borghetti transform the airline from a low-cost carrier to a premium brand.
The airline's business efficiency project is on target todeliver gains of $60m this year, rising to $200m
in two year's time.
"We took out the whiteboard in the meeting room next doorand put a giant screen in there which connected to thelaptops. We didn't want to deal with paper reports any morebecause they have a time gap, a time delay. You need to beable to click through in real time. It changes the level ofengagement.
Source: DAMON KITNEY THE AUSTRALIAN MAY 06, 2013 12:00AM
That is a mind-shift change. You can hold people accountable for the microoutcomes as opposed to the top-level outcomes," Narayan says.
III
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Path to Finance Transformation
Balanced scorecard playbook in Statoilambition to action
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Path to Finance Transformation
Balanced scorecard creating a self regulating system
to actionDefine
Success
DefineMetrics
DefineActions
Ambition
to actionDefineSuccess
DefineMetrics
DefineActions
Ambition
to actionDefineSuccess
DefineMetrics
DefineActions
Ambition
Translated
Translated
to action
to action
to action
to action
to action
to action
LESSCost cutting
Calendar driven
Absolute KPIs
Controlling
MORECost conscious
Event driven
Relative KPIs
Self Regulating
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Path to Finance Transformation
33
IBM Case Study
Predict potentia l threatsand op portun i t iesSpot and analyze trends
and anomalies
Assemble and interact
with relevant inform ation
Compare what-if
scenarios
Unders tand customer
sentiment and behaviorPlan, budg et and
forecast resources
Assess and manage risk
Measure and
moni tor behav ior Turn insight into action,
optim izing results
Align strategic and
operational decis ions
Business Analytics
Businessinsight
Operationalefficiency
Managerisk
CFRS
Grey Market Analyt ics
Exhibitsattribute
Does not exhibitattribute
Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18
Likelihoodofa dealachievingobjectives
Exhibitsattribute
Does not exhibitattribute
Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 17Attribute 18
PRISM
Cont inuous Cont ro l
Monitor ing
SEE
Invest igat ion Report ing
Data WarehousesFinancial information strategy
Common
datadefinitions
Commontransaction applications
Common ledgerLedger
AcctgConsol
CorporateWhse
Fin'lPlanning
GeoWhse
EmployeeDisbursements
Intercompany
AccountsPayable
AssetsAccountsReceivable
Common datadefinitions and processes
Corporatedata standards-financial elements
Single worldwide chartofaccounts
Finance lead client
Commonworldwideplanningsystem
Singleworldwidefinancialinformationwarehouse(FIW)
Commongeographicmega-centers
Singleworldwideconsolidationsystem
BusinessMgmt.Info
TreasuryMgmt.
InfoCommon information
Jam / IDEA Lab
Dashboards
Predic t ive Analyt ics;
WWSpend; STAR
LEADS-ONLY
PILLAR
LEADS-AND-LOAD
PILLAR
LOAD-ONLY
PILLAR
LEADS-ONLY
PILLAR
LEADS-AND-LOAD
PILLAR
LOAD-ONLY
PILLAR
LEADS-ONLY
PILLAR
LEADS-AND-LOAD
PILLAR
LOAD-ONLY
PILLAR
FirmLOAD-ONLY
PILLAR
FirmLOAD-ONLY
PILLAR
FINAL OPTIMIZEDASSESSMENTanoptimal weightedaverageofthe four pillars
for eachgeo/region, andbrand
WEEKLY PILLARWEIGHTINGMODELComputes historically optimal weights for
eachpillar, by week, geo/region, andbrand
IBMResearch
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Path to Finance Transformation
Marketing
Campaignscorecard
Promotionplan
Customer /Productprofitability
Revenueplan
Sales
IncentiveCompensation
Quota Plan
Territories
SalesChannels
Sales
dashboard
Long-termplan
CapEx &Workingcapital
Cash flowplan
EPS / DCF
projections RiskReporting
Finance
Workforce
WorkforceKPIs
Headcountplan
Salary &comp
Staffing plan
Training &Development
Operations
Ops KPIs
S&Op plan
Capacity &Inventoryplan
Productallocation
New
products
IBM delivers one comprehensive, analytic and planning platform
Drive insight and agility by linking across domains
SalesPerformanceManagement
OperationalPerformanceManagement
FinancialPerformanceManagement
DisclosureManagement &Financial Close
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Path to Finance Transformation
SalesPerformanceManagement
OperationalPerformanceManagement
FinancialPerformanceManagement
DisclosureManagement &Financial Close
IBM delivers best-in-class predictive and big data analytics
Likelihood of churn
Credit worthiness
Future lifetime value
Predictive models Profitability analysison retention,performanceand patterns
Customer data
Transaction history
Social Media history
Change policy,In-process decision
management
Advance analytic maturity by leveraging capabilities
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Path to Finance Transformation
Where to start ?
Lead a disciplineof performance
Drive enterpriseagility Anticipate the future
Performance Management
o Client Briefing 1 day
o Maturity Assessment - 1 wk
o Business Value Assessment 2 wks
o Performance reporting demo
Roadmap session 1 day
Finance Healthcheck
Business Analytics ExperienceWorkshop
Business Analytics and OptimizationJumpstart
Predictive Proof of Concept
Financial Metrics Briefing
Performance Management Diagnostic
Business and IT services sourcing | Security | Business resilience | Application rationalization | Cloud and systems | Big data
Workforce analytics and optimization | Workforce and talent assessment | Workforce collaboration | Change management |Culture transformation
Project financing | Leases and loans | Global asset recovery servicesFinancing
Consulting,implementation,
software
Quick Starts,Proof of
Concepts &
Business CaseDevelopment
Talent andchange
management
Infrastructureand systems
Revenue Management Diagnostic
Sales performance ManagementPilot
Predictive analytics
Financial analytics
o Performance reporting, dashboardsand KPIs
o Planning , budgeting, and forecasting
o Disclosure management andfinancial close
Fraud and risk analytics
Big data exploration
Profitability modeling and optimization
Strategic planning and management
Risk and assurance analytics
Operational analytics
Digital front office
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Path to Finance TransformationThank You
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Path to Finance Transformation
PM Snapshot Services and Solutions Overview
Customer Analytics(CCI)
Financial Analytics(CFO Dashboard)
Supply ChainAnalytics &Dashboards
Human Capital(Workforce)Analytics
Industry SpecificAnalytics (e.g.,
DSR)
Domain Areas
PM Diagnostic (BVA)
Cognos Optimization (BVA)
Planning,Budgeting &Forecasting
(primaryfocus on
TM1)
BusinessAnalytics &Reporting
(core BIprimarilyCognos)
Dashboards& Scorecards
(core BIprimarily
Cognos. AlsoSPSS for
predictive)
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IBM has successfully developed, incubated, and deployedanalytics-based initiatives across several areas
Focus Areas
SalesManagement
RiskManagement
Development HR ResourceManagement
Planning &Forecasting
Using matchingengine to analyzeunstructured joband resumeinformation toidentify best stafffor open positionson projects
Simulating futureperformance ofdevelopmentportfolio &investment mix
Consolidating andanalyzing datafrom disparatesources toaddresscomplianceissues andpinpoint risks
Predicting andoptimizingperformance byanalyzingproductivity andpipeline
ste e enuerobabilit ist ribution
Mean =$4,694M
X 2 0 2 4 T o talUSD 6 5 1 3 3 1 , 6 7 5 1 ,4 0 0 2 , 00 3 0 0 0 3 ,0 0 0 1 , 60 0 7 5 0 0 0 0 0 0 3 , 9 8 2 15, 093
USD I G C 4 , 5 3 1 0 0 1 , 5 0 0 0 6 4 0 0 0 0 0 0 0 0 0 0 0 6, 095EUR 0 1 , 3 84 8 3 0 0 0 1 , 0 38 0 0 0 0 0 0 0 0 0 0 0 3, 252JPY 0 5 1 0 0 0 5 1 0 20 4 0 0 0 0 0 0 0 0 0 0 0 1, 225CHF 0 0 3 2 1 0 0 0 1 3 8 0 0 0 0 0 0 0 0 0 0 458
T o t a l 5 , 1 8 2 1 , 9 2 7 2 ,8 2 6 2 , 9 0 0 2 , 5 1 3 1 , 3 0 6 1 3 8 0 3 ,0 0 0 1 ,6 0 0 7 5 0 0 0 0 0 0 3 , 9 8 2 2 6,123
TermDebtM aturityProfile as of M ay'09
0
1, 000
2, 000
3, 000
4, 000
5, 000
6, 000
2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 > 2 0 2 4
$Million
U S D U S D IG CE U R J P YCHF
Debt M at uri t yProf i l e byQ uart er next 5 years
510
21
500321
1,000 1,005
0 0 0
2,900
1
1,042
0
1, 4701,242
640 0 0
1380
500
1, 000
1, 500
2, 000
2, 500
3, 000
3, 500
3Q 104Q 10 1Q 112Q 113Q 11 4Q 111Q 12 2Q 123Q 124Q 12 1Q 132Q 13 3Q 134Q 13 1Q 142Q 143Q 14 4Q 141Q 15 2Q 15
$0
$5
$10
$15
$20
$25
$30
$35
$40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09
TotalDebt($B)
1%
2%
3%
4%
5%
6%
Percentage(%)
Total Debt
Interest Expenseas a% (QoQ)
3MLibor(QoQ)
$0
$5
$10
$15
$20
$25
$30
$35
$40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09
TotalDebt($B)
1%
2%
3%
4%
5%
6%
Percentage(%)
Total Debt
Interest Expenseas a% (QoQ)
3MLibor(QoQ)
LIQUIDITYANALYSIS/ CASH-DEBT
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Path to Finance Transformation
4040
We practice what we preach !!!
Territory OptimizationProgram (TOP)
Optimization of salesterritories for individual
sellers
Proactive Retention
Optimization of investmentsin employee retention
75+ consultants in US (50), Europe (15), Japan and Growth Markets (12) operating as a global team Part of IBM Corporate Headquarters organization
Strong partnership with IBM Research, Finance, and Business Units
Coverage Optimization withProfitability (COP)
Sales coverage optimizationthrough client-level profit
estimation
Examples
Market Alignment Program(MAP)
Client-level view ofopportunity for resource
allocation
Smarter EnterpriseEnablement
Integrated environment forstrategic planning,
modelling, and optimization
STAR
Statistical revenueforecasting
Capacity and Productivity(CAP)
Sales capacity andproductivity analysis
PRISM
Risk assessment andmitigation in integration of
acquisitions
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Path to Finance Transformation
1.State of Play & NewPressures Faced
2.Beyond PerformanceManagement
Agenda
3.Success Stories
4.IBMs Response
5.Where to Start ?
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Path to Finance Transformation
IBMs Approach going forward is to
Deliver business outcomes LOB Business Process Transformations analytics as a source of value creation
Integrated Risk Management platform to enterprise-GRC and risk enabled decision support
Integrated Performance Management solutions covering finance and critical business functions
Enable pervasive analytics Cloud / APIs / Mobile
AZone + Answers: A place where people engage around analytics for insight & decisions
Synergies - Leverage IBMs depth and breadth of assets, skills, capabilities and knowledge
Descriptive
Prescriptive
Predictive
Cognitive
What has happened?
What could happen?
How can we achieve the best outcome?
How can we learn dynamically?
IBM BrandedBig Data &AnalyticsPlatform
Information Layer
How is data managed and stored?
How
caneveryone
b
emoreright.moreoften?
BusinessValue
Disrupt the market
Innovate in descriptive,predictive, prescriptive andcognitive systems
Develop Interactive Analyticswith unparalleled user interactionsolving key business problems
Provide people-centric, task andworkflow-based solutionsenabling collaboration
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Path to Finance Transformation
1.State of Play & NewPressures Faced
2.Beyond PerformanceManagement
Agenda
3.Success Stories
4.IBMs Response
5.Where to Start ?
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Hamish Barwick (CIO) 24 October, 2012 13:47
Predictive analytics pays off for Australia PostGovernment agency uses IBMs SPSS software and TM1 software to improve agency payment forecasting.
Manual cash flow forecasts are a thing of the past for Australia Post with the
implementation of two software packages which crunch data to produce accurate daily,
monthly and annual forecasting reports.
Speaking at IBMs Information On Demandconference in Las Vegas, Australia Post
business analytics manager Armand Mizan told delegates that its manual forecasting took
weeks to produce and was not always accurate.
In addition, Australia Post staff had little visibility around movement of agency cash flows.
The company works as an agent on behalf of companies such as the Australian Tax Office
(ATO), telecommunications and utility providers. It receives payments for these companies
at 4500 retail outlets and online. These payments go through an Australia Post bank
account and are re-distributed back to the agency.
Lack of data scientists could derail big data projects: IBM[1]
In pictures: IBM Information On Demand day one [2]
According to Mizan, Australia Post processes $50 billion worth of agency payments per year.
To help the department overcome the problem of manual cash flow forecasting, it decided to implement IBMs SPSS predictive
analytics software and Cognos TM1 enterprise planning software.
We had a monthly cash flow model which was based on actual figures, he said.
This would then populate the daily cash flow through a translation. From that, the agency forecast model is produced through SPSS
and the results sent back out into TM1.
In order to check and determine the accuracy of the information in SPSS, Australia Post took historical data from August to October
2011 and put it through the software to p roduce a forecast.
That forecast was compared to the actual data from 2011. We achieved an accuracy level of between 95 and 98 per cent using SPSS,
Mizan said.
Business outcomes
Australia Post now has fully integrated actuals and forecasted monthly cash flows for the next four years. The monthly and daily cash
flow models are also aligned.
There is also greater visibility of agency financial data, something which Mizan said the company did not have before.
Australia PostAustralias Largest Retailer Forecasts across 5000 stores with SPSS + TM1
The Business Pain Cash Forecasting and Management across a
hugely dispersed retail branch network
How It Was Solved SPSS provides generated forecasts of cash
transactions by type, at daily level by store. Cognos TM1 receives the SPSS forecast and
allows for detailed adjustment for known localfactors.
Value To The Customer Large reduction in working capital requirements Cash optimisation Reductions in Costs Increased accuracy in Forecasting Streamlined internal financial reporting Executive Dashboards and Management
reporting
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Path to Finance Transformation
52
Lead business model innovation through a new discipline ofperformance: Creating the future
III
C-SUITECFO
OUTTHINK AND OUTMANEUVERTHE COMPETITION New business model decisions
Business model innovation
and prototyping Long term financial roadmaps
Value and risk drivers across
the entire value chain
Externalopportunities
Internallevers
MODEL
MODEL
MODEL
MODEL
MODEL
Clearly und erstand
value and r isk
dr ivers
Rigorously and
cont inuou sly realign
resources to new
oppor tuni ty
Use advanced analyt ics to
ident i fy the r ight act ions to
capital ize on m arket and
technology changes
KEY CHARACTERISTICS
Create long term financial
roadmaps encom passing
business model
t ransformat ion
Integrate data and
innovate across
mul t ip le business
uni ts
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Path to Finance Transformation
53
IBMs own transformation can serve as a model for clientslooking to grow and evolve
IBM transformation outcomes
Created globally integrated Shared Serviceswith owners accountable for meeting productivitygoals
Drove continuous improvement throughstructured approaches, shared GIE principles,governance and across Shared Servicemeasurement of process maturity
Applied proven principles of Shared Servicestransformation to all of IBMs spending
2011-2015 ~$8B savings
Operating in over 170 countries with more than 430,000 employees,IBM saw $104.5B revenue and $17.6B income in 2012
Cumulative Enterprise Productivity Savings
2006-2010 ~$6B savings
Shared Services End-to-End Process Transformation Integrated Operations
Consistent world-wide processes, bestpractices, standardization, governanceand performance discipline Right skills, right place, right cost,
rationalized support functions,radically simplified processes Instrumented, interconnected, growth
enablement, whole system optimization
Sharing and partnering
Globally integrating
Sharing and partnering
Globally integrating
Making things smarter
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Path to Finance Transformation
IBMs transformation agenda using Analytics
Manage RiskEnterprise Risk Management
and advisor to business units andsenior management
Operational EfficiencyEfficient service delivery throughstandardization, automation and
centralization
Business InsightTrusted Business Advisors
Use Cases Use Cases Use Cases
WW Spend
Employee Expenses Monitoring &
Analysis
Workforce Analytics
Coverage Optimization
SO Cost and Risk Management
Labour Claiming Analytics
STAR
Business Intelligence Dashboards
Services Backlog Run Out and Revenue
Analytics
Business Partner Optimization and
Opportunity Growth
Transformation for Quota and
Opportunity Alignment
Country Financial Risk Scorecard
Business Partner Grey Market Analysis
PRISM M&A Risk Management
Strategic Planning Optimization
Critical Parts Management Tool
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Path to Finance Transformation
IBMs commitment to Business Analytics is a catalyst behind its transformation
IBM Growth Initiatives
Includes software,
hardware and services
10%CAGR
2009 2015
Source: IBM Investor Relations, May 2010; $16B refers to cross-IBM revenueincluding Software, Services and Systems.
BAO Revenue(including SW, HW and services)
SmarterPlanet
Cloud andNext
Generation
Data Center
GrowthMarkets
BusinessAnalytics
andOptimization
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Path to Finance Transformation
New & ImprovedIBM Delivers Performance Management
Common Information & Technology Platform
ProfitabilityModeling &Optimization
Management & Performance Reporting
DisclosureManagement& FinancialClose
SalesPerformanceManagement
Integration and AutomationHierarchy ManagementAnalytic Data Management
PlanningAnalysis &Forecasting
Improved!
Improved!
Scorecarding& StrategyManagement
NEW!NEW!Improved!
Improved!
Q2 Q3
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Path to Finance Transformation
Three imperatives guide todays most effective CFOs
CFOs design integrated operating models andprocesses that are the foundation of a globallyintegrated enterprise that proactively adapts andcontinually positions for the future.
New analytics and data sources enable CFOs tooffer predictive and prescriptive insights and drivea forward-looking culture that permeates theorganization and better shape the future.
CFOs are guiding the evolution of the organizationsvalue creation engine with profit opportunities tocreate the future.
Drive agility throughenterprise analytics
Help the business makebetter decisions byanticipating the future
Lead business modelinnovation through a newdiscipline of performance
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Path to Finance Transformation
IBM Finance Current Environment 2009
In order to drive change one must first understand the starting point
Most Common, global financial applications anddata with high volume reporting
Powerful set of data and reporting capabilitieswhich are not being leveraged for predictive
analyticsLimited knowledge of new tools andapplications across functions
Minimal integration between financial and non-
fincial data to optimize decision makingTypical approach to analytics involve manualforecasting and extensive use of excelworksheets
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Path to Finance Transformation
IBM has successfully developed, incubated, and deployedanalytics-based initiatives across several areas
Focus Areas
SalesManagement
RiskManagement
Development HR ResourceManagement
Planning &Forecasting
Using matchingengine to analyzeunstructured joband resumeinformation toidentify best stafffor open positionson projects
Simulating futureperformance ofdevelopmentportfolio &investment mix
Consolidating andanalyzing datafrom disparatesources toaddresscomplianceissues andpinpoint risks
Predicting andoptimizingperformance byanalyzingproductivity andpipeline
ste e enuerobabilit ist ribution
Mean =$4,694M
X 2 0 2 4 T o talUSD 6 5 1 3 3 1 , 6 7 5 1 ,4 0 0 2 , 00 3 0 0 0 3 ,0 0 0 1 , 60 0 7 5 0 0 0 0 0 0 3 , 9 8 2 15, 093
USD I G C 4 , 5 3 1 0 0 1 , 5 0 0 0 6 4 0 0 0 0 0 0 0 0 0 0 0 6, 095EUR 0 1 , 3 84 8 3 0 0 0 1 , 0 38 0 0 0 0 0 0 0 0 0 0 0 3, 252JPY 0 5 1 0 0 0 5 1 0 20 4 0 0 0 0 0 0 0 0 0 0 0 1, 225CHF 0 0 3 2 1 0 0 0 1 3 8 0 0 0 0 0 0 0 0 0 0 458
T o t a l 5 , 1 8 2 1 , 9 2 7 2 ,8 2 6 2 , 9 0 0 2 , 5 1 3 1 , 3 0 6 1 3 8 0 3 ,0 0 0 1 ,6 0 0 7 5 0 0 0 0 0 0 3 , 9 8 2 2 6,123
TermDebtM aturityProfile as of M ay'09
0
1, 000
2, 000
3, 000
4, 000
5, 000
6, 000
2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 > 2 0 2 4
$Million
U S D U S D IG CE U R J P YCHF
Debt M at uri t yProf i l e byQ uart er next 5 years
510
21
500321
1,000 1,005
0 0 0
2,900
1
1,042
0
1, 4701,242
640 0 0
1380
500
1, 000
1, 500
2, 000
2, 500
3, 000
3, 500
3Q 104Q 10 1Q 112Q 113Q 11 4Q 111Q 12 2Q 123Q 124Q 12 1Q 132Q 13 3Q 134Q 13 1Q 142Q 143Q 14 4Q 141Q 15 2Q 15
$0
$5
$10
$15
$20
$25
$30
$35
$40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09
TotalDebt($B)
1%
2%
3%
4%
5%
6%
Percentage(%)
Total Debt
Interest Expenseas a% (QoQ)
3MLibor(QoQ)
$0
$5
$10
$15
$20
$25
$30
$35
$40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 09
TotalDebt($B)
1%
2%
3%
4%
5%
6%
Percentage(%)
Total Debt
Interest Expenseas a% (QoQ)
3MLibor(QoQ)
LIQUIDITYANALYSIS/ CASH-DEBT
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Path to Finance Transformation
CHALLENGE
SOLUTION
BENEFITS
Different geographies andbrands used their own datasources and processes supportingexpense management
No standards meant systemswere not tied to key CHQmanagement system (WWIE)
Delays in accessing information
due to long load times of Cubes
Implemented consistent dataand metadata standards
Developed a flexible / modernSOA architecture allowing for
easy expansion acrossgeographies
Single worldwide applicationfor Spend Analytics and trackingon one TM1 Cube across allgeographies with 3,000+ currentusers, 500+ concurrent activesystem users
Increased visibility across
geographies and brandsallowed for cost controloptimizations
Common processes increasecareer options of financialanalysts across IBM
Single application to supportcommon set of skills required to
use and maintain
Reduced cube load times by80%
Reduced calculation timesfrom 45 minutes to near realtime
Lower third party licensingcosts
WorldWide Spend Application
Analytics Tool:IBM Cognos TM1
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2013 IBM Corporation
Path to Finance Transformation
STAR (Statistical Tracking & Assessment of Revenue) Consistent metric-driven model for performance estimation
wk 13
End of Quarterwk1 wk2 wk3 wk4 wk5 wk6 Today
METHODOLOGY
LEADS-ONLY
PILLAR
LEADS-AND-LOAD
PILLAR
LOAD-ONLY
PILLAR
FirmLOAD-ONLY
PILLAR
Orders
Opportunity data fromEIW (i.e., Siebel)
Each opportunity detail is
modeled
Revenue data tocalibrate parameters
Quarterly transactional
revenue
Load data
Provides value of
closed deals
ready to ship
Compute Probability of
Winning and Expected
Yield of each opportunity
using detailed EIW data
Predict, based on
history, the Future
Yield due to
opportunities not yet
in the pipeline
FINAL OPTIMIZED ASSESSMENTan optimal weighted average of the four pillars
for each geo/region, and brand
WEEKLY PILLAR WEIGHTING MODELComputes historically optimal weights for
each pillar, by week, geo/region, and brand
Assessment Precis ion Compar ison
STAR Mod el:
Consistent metric-based method(stat ist ical model based on his torical data)
Link tracking measures to performance
Accu rate in early weeks, low volat i l i ty
over weeks
Re-focus h uman effort from estimating
outcomes to dec is ion-support ac t iv i t ies
IBM
Res
earc
h
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Wk 13
DeltatoActual
I-view STAR1 STAR2
f
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Path to Finance Transformation
Application: BaRT Backlog RunoutTracking billions of dollars in revenue commitments
CHALLENGE
SOLUTION
BENEFITS
Limits in Essbase meant using
manual spreadsheets compiled atseveral levels of consolidation toget answers
Poor visibility into when revenueshould be forecast to berecognized
Inability to look at past backlogand drill to details such as contract,
country or division to performmeaningful analysis
Insight gained with a discreteview of revenue for each dealunder contract as well as aportfolio of contracts.
Automation of the backlog totrack the revenue commitment
Single global interface for
tracking services revenue
Automates generating answerswhile allowing business users tointervene and perform analysis
Enables constant view through
trusted data source
Reduced need for independentspreadsheets and reducing therisk of data loss
Lower maintenance costs withincreased reliability
P th t Fi T f ti
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2013 IBM Corporation
Path to Finance Transformation
IBM Country Financial Risk Scorecard Smarter Near Real-time Integrated Risk Management
Analytics Tool: IBM
Cognos BI, SPSS,OpenPages
CHALLENGE
SOLUTION
BENEFITS
Vast amounts, but fragmented
data provides little opportunityfor consistent analysis andproactive identification offinancial country risks
Lack of automated solutionrequires manual aggregation andanalysis
Limited vis ib i l i ty to external r isk
creates a blind spot to emerging
risks
Created Scorecard thatautomated information integrationand financial risk monitoring KRIs
Business insights into riskexposures
Risk-based predictive analyticsby:
- Country- Trends
Enable agi le decis ion making
to seize opportunities andmitigate impact of unfavorable
risk events. Centralized,consistent, and automatedapproach to measure and monitorfinancial risks
Empowering chief financialofficers (CFOs) to be valueintegrators
Increase prod uctiv ityof financeleaders across the enterprise,encourage broader globalcollaboration, and elevate skil llevels. Reduce time to gather andanalyze data from weeks to
hours
P th t Fi T f tiChina Financial Dashboard Summary Report (Extract)
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Path to Finance Transformationy p ( )
IBM Country Risk Score Actual PredictionQ4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012
Economic Indicators Low Low Low Low Low Liquidity Factors High High High High High
Risk/Reward Me di um L ow Me di um L ow Me di um L ow Me di um L ow Me di um L ow
Shareholder Value Lowes t Medium Low Low Low Low
Worldwide IBM Country Risk Heat Map 1Q 2012 Enterprise Risk Heat Map 1Q 2012
China IBM Country Risk Score
Financial Performance Risk Indicators
ERM Risks: Operational
Risk Category Status
1 Business Partner
2 Cyber Risk
3 Talent & Leadership
4 Employee Relations
5 Annuity Base
6 Regulatory Compliance
7 Integrity & Compliance
8 Physical Security
9 Reputation/Brand Value
10 Business Transformation/HRMS
11 Scaling Solutions
12 Service Delivery
13 Legal Structure
14 Real EstateLiquidity - Intercompany Aging
CF Credit Concentration
FY11 1Q'12 FY12 FY15
$/ Sha re YtY $/Sh are YtY $/Sha re YtY $/Sha re CAGR
11-15
IBM $ 4, 71 2 1 6% $ 1, 105 7 % $ 5,577 18% $8,348 15%
GCG Share 18% 1pts 1 7 % ( 0p ts ) 20% 1pts 21% 3pts
GtG/GtH 0 $0 $55 $3 0 0 $0 $0
IBM $3,652 18% $882 11% $4,414 21% $6,871 17%
PRC Share 18% 1pts 18% (0pts) 20% 2pts 22% 3pts
GtG/GtH 0 $0 $22 $0 0 0 $0 $0
IBM $560 14% $118 1% $ 613 10% $790 9%
HKG Share 21% 1pts 1 9 % ( 1p ts ) 22% 1pts 24% 3pts
GtG/GtH 0 $0 $8 $2 $0 $0 0 $0
IBM $501 6% $ 10 5 ( 14 %) $550 10% $687 8%
TWN Share 17% 0pts 1 4 % ( 3p ts ) 18% 1pts 18% 2pts
GtG/GtH $9 $0 $ 23 $17 $0 $0 0 $0
Revenue Mix Track
59% 60% 59%53%
11% 9% 12%15%
28% 29% 28% 31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
F Y2011 1Q 2012 F Y2012 F Y2015
STG SWG Services
Long Term SingingsTrack
70 100
221
410
-
50
100
150
200
250
300
350
400
450
500
FY 2 01 1 1Q 201 2 FY 20 12 FY 2 01 5
Key Drivers' Impact to China Growth
3,0283,660
2,560
666
3,1372,085
473
2,398
425483
1,575
400
2,016
78249
271
199
51
-
1,000
2,000
3,000
4,000
5,000
FY
2011
1Q
2012
FY
2012
FY
2011
1Q
2012
FY
2012
FY
2011
1Q
2012
FY
2012
0%
5%
10%
15%
20%
25%
30%
Rest HE SystemDist'd SW PRC YTY
PRC w/o Top banks&Telco
YTY
GeoE
Metro
Path to Finance Transformation
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2013 IBM Corporation
Path to Finance Transformation
Automating IBM Treasury Reporting
Analytics Tool:IBM Cognos FSR
CHALLENGE
SOLUTION
BENEFITS
IBM Treasury needed a solutionto automate the collection andaggregation of daily, updatedcash/debt data and FX rates
Such solution would allowTreasury Management to look at itscash positions around the globeand see near real-time dataquickly, easily and accurately
Using IBM Cognos FSR, theTreasury Department was ableto automate each step in thecash management process,which allowed it to:
Cut the time and effortneeded to collect, consolidateand review monthly reports andforecasts
Greatly reduce the risk oferrors in this critical Financefunction
IBM Treasury accomplished itskey objective of increasingproductivity by eliminating manymanual and error-proneprocesses
The collection, aggregation,review and validation of thequarterly cash and debt data andreports were automated, while
controls and visibility over theentire process have beenoptimized
Implementation and trainingwere quick since FSR leveragesthe familiar user interfaces ofMicrosoft Excel and MicrosoftWord
Path to Finance Transformation
COP
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2013 IBM Corporation
Path to Finance Transformation
Resource shifts aligned with COP result in increased productivity whileshifts misaligned with COP resulted in decreased productivity
Path to Finance TransformationIllustrative example COP
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2013 IBM Corporation
Path to Finance Transformation
High Revenue Growth Low Revenue Growth
Profit Margin 1. High Opportunity Headroom2. Low Opportunity
Headroom3. High Opportunity
Headroom4. Low Opportunity
Headroom
A. High Add Add Add Maintain
B. Medium Add Maintain Maintain Maintain
C. Low Maintain Cut Cut Cut
D. Very low Cut Cut Cut Cut
11%
30%32%
27% 28%26%
27%
64% 78%
31% 32% 30%
62%Cut Clients(19 054)
Maintain Clients (3 390)
Add Clients (8 299)
Technicalsellers(FTE)
Quotasellers(FTE)
Totalsellers(FTE)
Profit
42% 40% 44%
-10%
Revenue
6%
#Clients
Brand X, Geo YRev CAGR
19%
4%
5%
Coverage Optimization with Profitability (COP) add-cut-maintainanalysis is based on profit margin, revenue growth, and future revenueopportunity
Path to Finance TransformationOnTARGET
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2013 IBM Corporation
Path to Finance Transformation
OnTARGET is a prospecting tool helping sellers and managers findmost promising opportunities
Source: Lawrence et al., Analytics-driven solutions for customer targeting and sales-force allocation, IBM SYSTEMS JOURNAL, VOL 46, NO 4, 2007
Before
Yellow pages approach to prospecting
Sellers lacked tools that provided qualityprospects and information based on past andlikely future purchases
Disconnected data stored in heads and on hard
drives
Managers lacked an automated way to identifyother products clients may be interested in (howto identify cross-selling opportunities)
After
References a large universe of existing clientsand potential new clients
Incorporates relevant data that may requiremultiple existing tools to access
Includes analytical models to help identify thebest sales opportunities
Integrates all such data for each company undera single user interface designed by end users tofacilitate easy navigation
Path to Finance Transformation
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2013 IBM Corporation
Path to Finance Transformation
We are aggressively investing to enable clients and our company to driveinnovation through essential expertise
Autonomic Operations
Developer Productivity
Deep Compression
pureXML
pureScale
Pervasive Content
Stream Computing
Content Analytics
Advanced Case Management
Workload Optimized Systems
Social Analytics/Consumer Insight
2005
Decision Management
$16B in Acquisitions Since 2005
10,000+ Technical Professionals
7,500+ Dedicated Consultants
Largest Math Department in Private Industry
27,000+ Business Partner Certifications
8Analytics Solutions Centers
Optimized hardware and software offerings
100 analytics-based research assets;almost 300 researchers
Significant marketing investmentworldwide through Smarter Planet
2012
Path to Finance Transformation
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2013 IBM Corporation
Path to Finance Transformation
"IBM's solutions were reported to be used for a broader set of CPMprocesses than were SAP's (and somewhat more than Oracle's as well).IBM also had a higher overall satisfaction rating than either Oracle orSAP"
This platform approach (of IBM) stands in contrast to the traditional
mega-vendor approach to CPM, which involves offering a variety ofsoftware applications that challenge end users to obtain value.
Cognos TM1 finished #1 in Agility, Self-Service, and Project Length in oneor more of following vendor groups IT Giants, Performance Management,OLAP Analysis, and BI Giants
Gartner User Survey Analysis: Customers Rate Their CPM Vendors, 2012.Published: June 4, 2013. Analysts: Christopher Iervolino, John E. Van Decker
Nucleus Research Note: Technology Value Matrix First Half 2013, Corporate Performance Management,Document N93 Published: June 2013
The Customer Verdict, Barc Survey 12
Innovation Builds on Hard Won Advantages for Clients
IBM stands out versus alternatives
Path to Finance Transformation
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2013 IBM Corporation
Path to Finance Transformation
Introducing IBM Cognos TM1 V10.2
Measurement
IBM Cognos TM1 V10.2 delivers powerful modeling, flexible workflow and contribution, and
deep and fast analytics that meets your performance management challenges across your
enterprise planning, analysis, forecasting, profitability modeling, scorecarding and performancereporting processes in one easy to design, deploy, and run package on premise or via cloud.
Performance
Enable faster insightand sharper executionthrough dramaticperformance gainsmade in queryprocessing, LAN and
web performance.
Integrate metrics andscorecards into thehigh participationplanning, forecasting,and profitabilityanalysis to driveclosed-loopperformancemanagementprocesses.
Deployment
Drive performancemanagement throughevery part of theorganization whetherstarting in finance oroperations with oneeasy to design, deploy,and run package onpremise or via cloud.
Engagement
Engage the entireworkforce from theregular managementcontributor to the mostsophisticated businessanalysts with the tools
and software profilesthey require,eliminating delay,wasted effort, andoffline-shadowsystems.
Whats New?
Path to Finance Transformation
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Looking AheadProject Concert Enhances PM with Social, Mobile, and Enhanced Task
Management
Common Information & Technology Platform
ProfitabilityModeling &Optimization
DisclosureManagement& FinancialClose
SalesPerformanceManagement
PlanningAnalysis &Forecasting
Scorecarding& StrategyManagement
Q4 2014
20142014 Q4 Q4 Q4
Path to Finance Transformation
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2013 IBM Corporation
Marketing
Campaignscorecard
Promotion plan
Customer /
Productprofitability
Revenue plan
Sales
IncentiveCompensation
Quota Plan Territories
Sales Channels
Sales dashboard
Finance
Long-term plan
CapEx &
Working capital Cash flow plan
EPS / DCFprojections
Risk Reporting
Workforce
Workforce KPIs
Headcount plan
Salary & comp
Staffing plan
Training &Development
Operations
Ops KPIs
S&Op plan
Capacity &Inventory plan
Productallocation
New products
IBM delivers one comprehensive, analytic and planning platform
Drive insight and agility by linking across domains
SalesPerformanceManagement
OperationalPerformanceManagement
FinancialPerformanceManagement
DisclosureManagement &Financial Close
2013 IBM Corporation
Path to Finance Transformation
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2013 IBM Corporation
Smarter Outcomes delivered to peer group
Customer /Sales
CustomerRelationshipDashboards
Stage wise Pipelinetracking andpredicted closure
Sales forceProductivity
Detailed Account
and Large DealPlanning and
Analytics
Fact based salesreview process
Finance
Strategic FinancialOperational
Planning
Cash Flows, P&LManagement
Predictiveforecasting and
monitoring toimprove DSO
Facilities,Procurement and
Vendor Performance
Financial Close,Consolidate and
Report
RiskReducing cost of
Compliance
Managing ProjectDelivery Operational
Risk
Enterprise PolicyComplianceManagement
Fraudulent ClaimsManagement
IT Governance
DeliveryCustomer, Program,
Project Profitability
Resource Allocationand Utilization
Efficiency
Project Quality,Time and Cost
Monitoring andAnalysis
Project Quality
Metrics Analysis
Operational Costs
Management
HR
Hiring ChainVisibility, Efficiency
& Effectiveness
Learning Costs,Efficiency andEffectiveness
Early WarningSystem for TopTalent and All
Attrition
Succession PipelinePlanning
Headcount,Compensation andBenefits Planning
KPMG
Deloitte
Wipro
IBM
UST Global
IBM
PatniTCS
Wipro
IBM
UST Global
Path to Finance Transformation
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2013 IBM Corporation
Business AreasWhats Included?
Over 43,000 Objects including
250+ Dimensions
850+ Metrics
230+ Defined Calculations
1000+ Report Configurations
Embedded Data Warehouse
Financial Analytics
Ledger
Payables
Receivables
Cash Management
Customer/Vendor Risk
Workforce Analytics Talent Development
Talent Management
Talent Retention
Workforce Strength
Compensation
Common Decision-Making Model ERP AgnosticUnified Platform
Analytics Drill Through Packaged Reporting & AnalysisDatabase Agnostic
Cognos Analytic Applications
Adaptive Framework
Unlimited Extensions
Delivered ERP extraction
Unlimited Data Sources
Procurement Analytics Spend Analysis
Vendor Analysis
Contract Management
Operational Efficiency
Sales Analytics
Pipeline Performance
Sales force Performance
Sales Segmentation
Customer Relations
Pricing and Program Analytics
Path to Finance Transformation
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Best-in-Class Domain Content Delivered On-Demand OurPlay Store
Analytics ZoneBusiness Accelerator Applications
Predictive Analytics madebusiness-friendly and
"conversational" through easy-to-use data discovery platform
IBM's partner network to deliverhorizontal & vertical domain-area best practices
Rich, interactive & innovativevisualization via ExtensibleVisualization Sales pipeline modeling Marketing & lead-generation
Resource tracking and allocation
Expertise locator
Incentive compensation modeling
Have on-demand access to BusinessAccelerator templates for areas like:
Leveraging:
Path to Finance Transformation
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2013 IBM Corporation
A Glimpse of our Roadmap
Path to Finance Transformation
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Beyond 2013Consumable BI and analytics starts with a conversational experience
Path to Finance Transformation
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Contextually aware and
easy to share
Complex made easy through simple
business terms and natural language
Surface hiddenanswers leading
a user to morequestions
Automaticallyshow mostinteresting
view of databased on
underlyingsmarts
Easy access todata with
dynamic accessto different
analytic tools
Beyond 2013Making analytics consumable
Path to Finance Transformation
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2013 IBM Corporation 2013 IBM Corporation
IBM brings the deepest experience and broadest set of capabilities toguide you on this journey
More than 120,000 consultantsbased in over 170 countries
Deep expertise in 17 industries and
across functions like finance, HR,supply chain, and IT services
Three-tier delivery modelspanning on-site, globally integratedcapabilities and centers ofcompetency to meet shifting clientneeds around the world
Robust business process sourcingincluding marketing, finance, human
resources, procurement and supplychain
Unmatched software portfolioenhanced with $17B in acquisitionssince 2005
Leader rankings in BusinessConsulting, Strategy Consulting,Finance, Software and others as
assessed by Gartner, Forrester, IDCand 13 other analyst f irms from 2011to 2013
Predictable and compelling businessoutcomes delivered throughthousands of engagements aroundthe world
Delivered $8 billion in productivitygains over the last ten years of IBMsown transformation, driving efficiencyand fueling our growth strategy
Assessment services andaccelerators to jumpstart andexpedite business value
A leader in technology for over 100years with Nobel Prize-winninginnovation
First-of-a-kind breakthroughinnovations including IBM Watson
Analytics Solution Centersdelivering new capabilities at theintersection of mobile, social,analytics and cloud
Award-winning thought leadership
and insight from IBM Institute forBusiness Value, developed basedon face-to-face interviews withthousands of finance and C-suiteexecutives
Proven transformationsuccess
Breakthrough researchand innovation
Unrivaled expertiseand capabilities
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How can we help you achieve your objectives?
Next steps
Meet an expertby taking part in aScoping Session
Go deep with aSolution Briefing
Focus oninnovation ata peer to peerbriefing with anIBM FinanceAmbassador
Develop aroadmap usingBenchmarking &
Analytical Apps
Path to Finance Transformation
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2013 IBM Corporation
BACKUP
Path to Finance Transformation
Growth and Performance (GAP)
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GAP RESOURCE CAPACITY MODEL
Enables analysis and modeling ofhistorical productivity
Test/simulates viability of salesplans/targets and hiring plans/targetsrelative to different assumptions (e.g.
productivity improvements).
Provides the ability to: Determine the optimal size of salesforce
Determine best deployment across variousregions
Make accurate financial targets and determinethe gap to target
Get a true picture of intrinsic salesforceproductivity in a region/brand
Run scenarios to assess optimal actions neededto make targets (e.g. salesforce actions,expense reallocations or productivityimprovements )
CRITICAL NEEDSBetter visibility into returnsexpected from resourceinvestment and whetherinvestments are sufficient todeliver the business plan
A robust view of productivityand opportunities to improve
A comprehensive, yet easy tograsp, tool to support F&P andfacilitate decision making
Resource Planning
How many incremental
sellers are needed in 2009 todeliver x% revenue growth in
2010?
Performance Management
Which Brands / Regions /
Units have delivered returnsin proportion to investments?
Plan ScenariosHow much revenue can I
generate with the currentsalesforce?
IBM Internal Example: Growth and Performance Modeling (GAP)provides an analytics system to performance by modelingrelationship between sales capacity and revenue.
Path to Finance Transformation
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2013 IBM Corporation
Unilever drives enterprise agility
Objective
Achieve cost efficiencies and build platform for revenuegrowth with focus on brand called One-Unilever
Approach
Simplified its complex finance organization across
24 countries and 18 ERP systems Implemented standardized finance processes and
innovative technology
Leveraging asset-based process models and globaldelivery capabilities
Results
Integrated the company and created a more flexibleoperating and financial model
Greater efficiency and operational savings contributingto700M annual savings for the company
Unilever: Global consumer goods companyincluding foods, beverages, cleaning agentsand personal care products with 51+ billioneuro in 2012 revenues.
The successful partnershipbetween IBM and UnileverEurope, along with anambitious transformationagenda, will continue deliveringsignificant and sustainablebenefits for Unilever Europe.
Christian KaufmannVice President, Global Finance ServicesUnilever
CHALLENGE
SOLUTION
RESULTS
I
Path to Finance Transformation
8/10/2019 122222 reshaping
74/75
2013 IBM Corporation
Operational analytics
IBM solutions aredriving the next wave ofefficiency and growth
Assetmanagement
Threat andfrauddetection
Salesperformance
management
Supply chainoptimization
Path to Finance Transformation
8/10/2019 122222 reshaping
75/75
Drive new insight and agility
Marketing
Campaignscorecard
Promotion plan Customer and
productprofitability
Revenue plan
Strategy-aligned organization
Finance
Long-term plan Capex and
working capital Cash-flow plan Earnings per
share/discountedcash flowprojections
Risk reporting
Operations
Sales andoperationsplanning
Capacity plan Inventory plan Product allocation New product plan
Sales
Sales dashboard Incentive
Compensation Quota Plan Territories Sales Channels
Workforce
Workforcescorecard
Headcount plan Salary and
compensation Staffing plan Training and
development
RiskFinanceOperationsCustomers